By Laura Lutz
Des Moines, Sept. 25 - Nephros, Inc. arranged a $12.7 million private placement of series A secured convertible notes with four investors, according to an 8-K filing with the Securities and Exchange Commission.
Lambda Investors LLC, GPC 76 LLC, Lewis P. Schneider and Enso Global Equities Partnership LP bought the notes.
The notes mature in September 2008 and bear interest at 10% per year. Interest will be payable at maturity.
As a result, all principal and accrued interest under the notes will automatically convert into common stock 20 days after a definitive schedule 14C information statement is given to the company's stockholders. The conversion price will be $0.706 per share.
Upon conversion, the investors will also receive class D warrants for 50% of the number of shares into which the notes are converted.
The warrants will be exercisable at $0.90 for five years.
National Securities Corp. and Dinosaur Securities, LLC acted as co-placement agents.
Nephros is a New York-based medical device company.
| Issuer: | Nephros, Inc.
|
| Issue: | Series A secured convertible notes
|
| Amount: | $12.7 million
|
| Maturity: | September 2008
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $0.706
|
| Warrants: | For 50% of number of shares into which notes are converted, issued upon conversion
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.90
|
| Investors: | Lambda Investors LLC, GPC 76 LLC, Lewis P. Schneider, Enso Global Equities Partnership LP
|
| Agents: | National Securities Corp.; Dinosaur Securities, LLC
|
| Settlement date: | Sept. 19 (for Lamda), Sept. 20 (for GPC 76), Sept. 21 (for Schneider), Sept. 25 (for Enso)
|
| Stock symbol: | Amex: NEP
|
| Stock price: | $0.75 at close Sept. 25
|
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